Babel is not compatible with all document types, see e.g. : http://www.acm.org/sigs/pubs/proceed/sigfaq.htm#a16 However, babel is set in the LyX wide settings rather than in the Document wide settings. This seems to be a bug (e.g. if I send some one a babel incompatible document, they complain, even though I have disabled babel on my end)
-- John C. McCabe-Dansted PhD Student University of Western Australia